PLDT, SM Prime pace market's decline

PHILIPPINE stocks dropped on Tuesday, snapping a three-day climb.

Philippine Long Distance Telephone Co. (PLDT) fell after the nation’s largest phone company said second-quarter profit declined 8 percent on depreciation and foreign exchange loss.

“Oil prices are adding to the volatility in the market,” said Mark Canizares, an analyst at Citiseconline.com. “At the same time, investors are digesting the earnings results that are coming out.”

The Philippine Stock Exchange Index slid 10.88, or 0.5 percent, to 2,367.75 at the noon close in Manila, halting a three-day, 3-percent advance. The index rose as much as 0.2 percent earlier in the day.

Crude oil for September delivery rose as high as $77.30 a barrel Monday, the highest intraday price since July 17, on concern a pipeline closure in Alaska would disrupt supply for months. It recently traded at $76.72. Oil is 20-percent higher than a year ago.

SM Prime, the nation’s largest shopping mall operator, lost 30 centavos, or 3.7 percent, to P7.90. ALI, the nation’s third-largest shopping mall operator, fell 25 centavos, or 1.8 percent, to P13.50.

PLDT dropped P25, or 1.2 percent, to P2,080, snapping a three-day, 5-percent jump. The company said second-quarter profit fell to P6.7 billion from P3.7 billion a year ago.

Pilipino Telephone Corp. (Piltel), a unit of PLDT, dropped 5 centavos, or 1.4 percent, to P3.65, its lowest in nine sessions. Second-quarter profit slid 5 percent to P2.26 billion on higher costs from a debt payment, the company said Monday after the market closed.

Shares valued at P1.08 billion changed hands, 42-percent less than the six-month daily average. Losers beat gainers, 45 to 57, with 43 stocks unchanged.

Ayala Corp. added P2.50, or 0.6 percent, to P427.50, after climbing 1.8 percent Monday. Second-quarter profit tripled on higher earnings at its property, phone and banking units and gains from sales of shares in those ventures, the company said Monday after trading closed. Profit in the three months ended June 30 rose to P4.17 billion.

Corro-Coat Inc. surged 70 centavos, or 49 percent, to P2.12, its biggest ever jump. The shares rose 13 percent Monday after the paint maker said it would buy Chemrez Inc., Asia’s largest producer of biodiesel made from coconuts, in a share swap.

Global Equities Inc., a maker and distributor of absorbent cotton and personal care products, surged 9 centavos, or 28 percent, to 41 centavos, its highest close since January 26, 2001.

The shares rose on speculation the company will expand into outsourced business services including call centers, according to Citiseconline.com’s Canizares. “The speculation has made it a very volatile stock.”

Robinsons Land Corp., a builder of shopping malls, offices and homes, rose P1, or 8.9 percent, to P12.25, its biggest gain since February 15. The builder said Monday profit for the nine-months ended June 30 grew 21 percent to P1.23 billion on higher sales.

“The market is paying notice because of its earnings,” said Manny Cruz, head of research at Belson Securities Corp. in Manila. “The results give the impression that Robinsons is proceeding well with its property projects.”

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